PARTS of the Labour Party are “in denial” about the promise of further devolution contained in the Assembly coalition agreement with Plaid Cymru, Ieuan Wyn Jones told his party conference.

The Plaid leader and Deputy First Minister promised his party’s spring conference in Newport that both Plaid and Labour would campaign for a primary law-making Assembly before the next election.

His joint administration with Rhodri Morgan has set up a convention to probe public opinion as a step towards a referendum on Scottish-style powers by 2011.

But Mr Jones said: “Agreeing to hold a referendum is not enough. There has to be a campaign for a ‘Yes’ vote.

“Some Welsh Labour MPs are in denial over this commitment.

“But this is what we’ve signed up to in One Wales, this is the deal, in black and white – and it will be delivered.”

Welsh Secretary Paul Murphy has played down expectations by doubting a referendum will be held before the end of this Assembly term.

Mr Jones also used his speech to tell his party it must move on to the next stage in its development so it can reach out to the whole of Wales.

Having got into power for the first time in its history last summer, Plaid was realising the aspirations of generations of its supporters, he said.

With an eye on May's local elections, Mr Jones said Plaid was not interested in running things on a “business as usual basis''.

“We can’t afford to stay in one place. We have to move to the next stage in our development.

“Now the challenge is to move Wales forward. We have started on the work through our national government. Now we need to move our communities forward through local government.”

He added: “We have the right to call ourselves a party for the whole of Wales.”

He championed the achievements of the nine-month-old coalition, insisting that it was improving the quality of life in Wales.

But he warned the party not to flinch from unpopular decisions and the realities of power.

“Being in government is never easy, and there are difficult choices which have to be made,” he said.

Mr Jones urged the party rank and file to go out and campaign in favour of a beefed-up Assembly as Wales gears up for a “national debate on the next step for self-government”.

“Friends, it will then be up to us – each and every one of us – to make the case for further powers.

“It will be our opportunity, our responsibility to have an intelligent and mature debate that will inspire the people of Wales to move to the next stage of our development.”

He said the One Wales coalition was making progress across all policy fronts, including in his own field of the economy where he promised more help for businesses and said the Government’s performance on improving transport would be measured by new targets.

“We are now delivering on the aspirations of generations of Plaid Cymru supporters and members,” Mr Jones said.

He attacked the Liberal Democrats and the Conservatives – with whom he went to the brink of leading an alliance to oust Labour after last May’s Assembly election.

Tory MPs were indulging in the “worst excesses” of anti-devolution rhetoric, he claimed. And he promised there would be no let-up in the fight against Labour for control of local councils, challenging their coalition partner’s “sterile” leadership.

Plaid says its campaign will focus on health and climate change. It has revealed policies to introduce bicycle sharing schemes and provide more allotments.

“Let’s not forget that the coalition with Labour only applies to the Assembly.”

Earlier on Saturday, Plaid AM Jocelyn Davies, the deputy minister for housing, said some voters might be “put off” in May because of the Assembly Government coalition.

But she added that Plaid’s presence in the Government had made it more “transparent” and “available”.